Helios Capital has upgraded its FY27 earnings growth outlook to 14-15% following a surprisingly resilient March quarter performance. According to CEO Dinshaw Irani speaking to NDTV Profit, analysts had initially cut earnings growth estimates to around low double digits after the West Asia conflict broke out, but are now revising them upward. The upgrade comes after 90% of Nifty 500 companies reported their March quarter results, showing stronger-than-expected performance across market segments.
The earnings growth varies significantly across market segments, with midcap companies leading at 27% growth. As reported by NDTV Profit, smallcap earnings growth stands at approximately 17%, while largecap companies are reporting growth of roughly 10-11%. This performance has been attributed to steady domestic demand and companies' ability to gradually pass on higher raw material costs to consumers, particularly visible in oil and gas, auto, and consumer companies.
The June quarter, initially expected to be the weakest period due to geopolitical uncertainty and rising input costs, is now showing signs of strength. According to Irani's assessment, the quarter is looking at high single-digit growth despite initial fears. This resilience is largely attributed to steady domestic demand and companies' pricing power to pass through cost increases to consumers.
Helios Capital has become more constructive on discretionary and new-age consumption businesses while trimming exposure to some banking names. As reported by NDTV Profit, Irani emphasized that consumption remains the preferred area for investment, with healthy demand trends continuing despite global uncertainties. The firm's strategy reflects confidence in India's domestic market strength and consumption-driven growth potential.
Despite the positive earnings outlook, Irani cautioned that large market rallies may be harder to sustain globally due to slowing macroeconomic conditions and concentration in AI-linked technology stocks in markets such as the US and Taiwan. However, he believes India's earnings trajectory remains supportive for equities if geopolitical tensions stabilize and crude oil prices cool from current levels. The rupee stability and a relook at capital gains tax on foreign flows are identified as key factors for bringing FPIs back to Indian markets.
